TF or Terrorist Financing poses a serious threat to the global communities especially the financial sector. It affects the standing and credibility of even those who are directly unrelated to it. Typically, the process involves raising funds, transferring them and using them for purchases etc.
Terrorist financing uses funds to fund terrorist activities and the funds are raised by illegal as well as legal means. The legitimate sources make it difficult for the funds to be tracked effectively and the funds are raised from legitimate sources viz. personal donations, from businesses, charitable organizations as well as criminal sources, such as the drug trade, the smuggling of weapons and other goods, fraud, kidnapping and extortion.
Finance experts are constantly advising the community to handle all funds with care; especially those which are outwardly raised for noble causes. There are tell-tale signs which everyone associated should watch out for and in case of any aberrations report these to the concerned authorities.
Even in case of charitable organisations strict KYC with periodic updated should be insisted from all customers/donors and spike in the transactions or a sudden spurt of activity in any account should be noted.